Buying in the off-season an easy way to save hundreds

Monday, 6 August 2018

You could save hundreds of dollars if you're prepared to shop in the off-season.

Most seasoned shoppers know it pays to wait, whether that's for the end-of-season sale, post-Christmas markdown or Black Friday specials.

But new data from comparison website PriceSpy shows there are savings of hundreds of dollars to be made, simply by shopping out of season.

Liisa Matinvesi-Bassett, New Zealand country manager for PriceSpy, said: 'Our research looked at the price of the five most popular products listed on PriceSpy under the categories of ski and snowboarding equipment, sunglasses and suitcases, to see how much seasonality can affect price.

'The data revealed that for ski and snowboard equipment, consumers can expect to pay on average $166 more in the winter, compared to out of season. Similarly, consumers can expect to pay on average $48 less for a new pair of designer sunglasses in winter, compared to the summer.'

A pair of Ray Bans were listed on the site at $104.50 less off-season than in the peak glasses-buying months. A set from Oakley were $40 cheaper in the winter months. You could save $296 if you bought ski bindings when everyone else was thinking about summer sports.

Marketing expert Mike Lee, from the University of Auckland Business School, said it was a matter of supply and demand.

'Stuff is worth more when it's scarcer, so it makes sense that the reverse is also true,' he said.

The table below shows the average price of the items listed, off-peak and in season.

'Stuff will be cheaper when no one is thinking about buying it,' Lee said.

'Therefore skis will be worth less when no one is skiing, and more expensive when everyone is skiing. Air travel is the best example of this phenomena. Tickets cost a lot more during peak season because space on a plane is limited. But off-peak, planes still need to keep moving, so extra seats need to be filled by lowering the price.'

He said the exception would be when stock was very scarce off-season. 'For example, trying to buy reef shoes in the middle of winter. But for larger retailers when there is stock left over from peak season, it makes sense to move it off the shelf even if it means earning a lower profit margin, as this frees up space - and cash - for stocking up the merchandise that customers are really after.'

Lee said it could work to buy just before the change of seasons, although that meant shoppers risked missing out on promotions or the arrival of new models on shelves.

'Buying after a season has passed in preparation for the next year ahead however, means the pain of missing out on new models and future potential sales promotions is dulled by the passage of time.

'The only cons of getting good deal early are depreciation, which probably does not worry most people for the merchandise we are talking about, and the fact that the stuff will be deadweight taking up space for the best part of nine months.'

Lee's colleague, Bodo Lang, said it was possible to save money by timing purchases that had less defined seasons, too.

'The most typical products in this category have clear generations or new models, such as cars, boats, bicycles, as well as some appliances and some technology products. Buying a product that is about to be replaced by a newer model often results in extensive discounting by retailers, thus creating the opportunity to save much money for thrifty shoppers,' he said.